Become Govt. Certified GST Practitioner in just 58 hrs. Register Now!

Liquidated Damages on fixed assets

BURLE MOHANA KRISHNA (ARTICLE STUDENT) (21 Points)

13 September 2018

Liquidated Damages on fixed assets whether to treated as revenue or reduce from capitalised asset?

Reply
Follow
Share

1 Replies

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 16 September 2018

Liquidated Damages received it is you revenue if you are doing business of the same product in the normal course of your business, if you are selling your fixed assets and receive any amount due to breach of contract you need to reduce the cost of the Fixed Assets.

But contract terms should be maintained properly.